A law office recently announced that shareholders of a financial services company will be a part of the securities class action lawsuit after the business announced a purchase agreement by a private equity firm.
Law firm Brodsky and Smith, LLC, noted that the litigation was filed against the leaders of DFC Global Corp., in the Court of Chancery for the state of Delaware. This occurred because of issues related to the company's purchase by Lone Star Funds.
If the pending deal is approved, shareholders of DFC Global would earn just $9.50 in cash per share of interests owned. This may be too low of a valuation, and due to this, allegations surfaced against company leaders such as a potential breach of fiduciary duties.
With the potential for shareholders to be undervalued in the transaction, it could hurt them in the long term due to many receiving a notable financial loss. One example of this is that the DFC Global stock actually traded at $19.90 per share on Feb. 14, 2013. An analyst also noted that the target price for each share of the company was worth approximately $15.
For those shareholders of DFC Global that would like to learn more about the action, or have questions related to how their legal rights may be affected by the proposed acquisition, it is an option to discuss these matters with the law office. Both Jason Brodsky and Evan Smith are available to talk about these issues. They can be reached by mail, email or telephone. Additionally, the law office's website provides further information.
Another investigation commences
A second law firm is looking into many of the aforementioned issues, and shareholders may see a second class action claim stem from this action.
Law office Robbins Arroyo, LLP, began the investigation of the leaders at DFC Global due to the proposed purchase by Lone Star Funds. The transaction was agreed on April 2, 2014. The premium in this transaction was just 5.8 percent on the April 1, 2014, stock price of $8.98 per share.
Shareholders who are interested in learning more about the situation are also welcome to discuss matters with this law firm. The best person to speak with about these topics is Darnell Donahue, and he can be reached by telephone or email. It is also an option to visit the firm's website, with has further details on the action.